
Get exclusive money-saving offers and guides
Straight to your inbox
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
Wise and PayPal are two convenient options for sending an online money transfer, but which one will net you a better deal on your next transfer?
To find out, we'll compare Wise and PayPal side by side to see who offers the lowest fees, the best exchange rates and the fastest transfer speeds.
The fees and rates used in this comparison are accurate as of 19 February 2019.
The "Rate" and "Amount Received" displayed are indicative rates that have been supplied by each brand or gathered by Finder.
Exchange rates are volatile and change often. As a result, the exchange rate listed on Finder may vary to the actual exchange rate quoted for the brand. Please confirm the actual exchange rate and mention "Finder" before you commit to a brand.
Wise's fee is usually a combination of a small percentage of your transaction amount (typically ranging from 0.4% to 1.5%) plus a flat fee.
The flat fee is between $1 and $2 for most major currencies, but can climb above the $5 mark in some cases.
Bank transfers attract lower fees than if you pay with a credit or debit card.
PayPal's fee structure is quite complicated. The amount you pay depends on your transfer amount and whether you pay for the transaction with your PayPal balance, bank account or credit/debit card.
Winner: Tie
If paying for your transfer from your PayPal balance or bank account, PayPal's international transfer fees can be quite competitive. However, fees quickly add up if paying with your credit/debit card, and the complicated fee structure can be difficult to understand.
Wise also offers minimal fees for most transactions, and offers a handy online tool to help you calculate the total cost of your transaction.
Compare fees between the two providers for your specific transaction to find the best value for money.
Let's take a closer look at how Wise and PayPal compare when sending two different amounts to the UK. In this example, we'll assume the PayPal transaction will be funded from your bank account and the Wise transaction paid for with a bank transfer.
Wise | PayPal | |
---|---|---|
Transfer fee | $1.34 | $2.99 |
Transaction cost | $50 | $52.99 |
Exchange rate | 1 AUD = 0.55179 GBP | 1 AUD = 0.5286 GBP |
Transfer speed | 1-2 days | Instant |
Amount received (in GBP) | £26.85 | £26.43 |
As you can see, not only will you pay $2.99 less to send the money with Wise (Wise deducts the fee from your $50 transfer amount), but your recipient will also end up with £0.42 more.
Wise | PayPal | |
---|---|---|
Transfer fee | $5.22 | $5.99 |
Transaction cost | $1,000 | $1,005.99 |
Exchange rate | 1 AUD = 0.55179 GBP | 1 AUD = 0.5286 GBP |
Transfer speed | 1-2 days | Instant |
Amount received (in GBP) | £548.91 | £528.60 |
Wise is a clear winner in this second comparison. Not only does it allow you to pay $5.99 less for the transfer than PayPal, but your beneficiary receives an extra £20.31.
Wise offers international money transfers using the mid-market exchange rate. This is the rate which you see listed on Google and sites like XE, and it represents the real market value of one currency relative to another. For example, if the mid-market rate is 1 AUD = 0.7130 USD, that's the rate you'll get for your transfer.
PayPal adds a margin on top of the mid-market rate. While this margin is typically smaller than that offered by the banks, it's generally around the 3.5-4% range.
Using the same example as we did for Wise:
Winner: Wise
Wise's exchange rates are much better than those offered by PayPal, which means more of the money you send arrives in your recipient's bank account.
Transfer times vary depending on the currency you send and the payment method you select.
While most transactions take between 1 and 2 business days, it's possible to send funds to some destinations within minutes.
Your recipient should be able to access the funds you send to their PayPal account almost immediately. However, please note that if the recipient doesn't want to leave this balance in their PayPal account, withdrawing to their bank account will take one or more business days.
Winner: PayPal
PayPal transfers are generally faster – but only if your recipient is happy to spend the money you send directly from their PayPal account. If they want it sitting in their bank account, you may find that Wise will get the money there quicker.
Payment methods | Receiving options | Minimum and maximum transfers | Transfer speeds | Currencies | |
---|---|---|---|---|---|
Wise |
| Bank transfer |
| 1 - 2 days | 48 countries |
PayPal |
| PayPal account transfer |
| 1 day | 190+ countries |
While Wise offers a handy fee and exchange rate calculator on its website, you'll need to sign up for a Wise account before you can make a transfer. You can then initiate a transfer by specifying the amount and currency you want to send and providing your recipient's bank account details.
You'll receive email updates throughout the transfer process and can track your transaction online or using the Wise app.
Before you can send money overseas with PayPal, both you and your recipient will need to have your own PayPal accounts. You can then link your bank account or credit/debit card to your PayPal account to fund your transaction.
To send a transfer, enter the email address or phone number of your recipient. You will then have to enter the details of your transaction, specify the reason why you are sending funds, and then take a moment to review the full cost of your transaction before submitting your transfer.
Wise generally offers much better value for money than PayPal on international transfers. While fee amounts often work out fairly similar between the two companies when paying from your bank account, Wise's commitment to offering the mid-market rate means that more of the money you send will end up in your recipient's pocket.
While PayPal can be useful when sending a small amount or when you need to make a quick transfer, Wise usually comes out on top.
Use our calculator below to compare the fees, exchange rates and transfer speeds of a range of international money transfer services. Simply enter your transaction details in the calculator to find out what fees and exchange rates are on offer.
PayPal, VISA and Bakkt have all announced various forms of crypto payments on their networks sending the price of Bitcoin back towards it's all time high.
Get today’s best Australian to US dollar exchange rates before you send money overseas.
Beat the banks, find the best exchange rates and avoid fees when you send money abroad from Australia.
Learn about how TransferMate’s personal product works and what it can do for you.
Make simple and small transfers to the Philippines through the IREMITX app.
Both Square and PayPal are popular choices, but which payment processor is best for your business needs?
Make Gifts Australia your go-to for great gifting ideas and solutions. Score a discount with one of these promo codes.
When it comes to stylish and comfortable footwear, make UGG Express your go-to and score a discount with one of these coupon codes.
Choose from over 3,000 flavours at Cold Rock ice creamery with these contactless delivery services.
Bitcoin has hit a new yearly high with PayPal adding fuel to its tank.